Watch out for this CMO’s work in EU

We are referring to Flexan’s recent expansion strategy in Europe. Company had previously acquired Medron to bolster it’s foot print in European market for medtech industry.

Currently it does lot of contract manufacturing of hearing aid devices in EU geography along with manufacturing of rubber and silicone based products. It also has recently appointed Werner Karau as new European commercial leader.

With a move of new office in Germany and other aforementioned activities, company seems to be leaving no stone unturned  to make it’s end customer’s life simpler.


Insights on Orthopedic Medical Device OEMs financials

Medical device companies generally enjoy gross margins anywhere in the range of 40% to 75%. Which means their spend (COGS) lies in the range of 25% to 60%. Though this range seems a little too much we were able to research figures for Orthopedic sector.

Analysis by Avicenne highlights that Orthopedic behemoths operate at best gross margins of 70-75%. Further their spend which is 25% of revenue is divided equally between in-house and outsourced activities.

While the entire medtech OEM fraternity plays at a outsourcing range of 25% as per recent analysis from PMCF, orthopedic has surpassed the outsourcing percentage to 49%. Old data from 2012 indicates for a combined revenue of 34.5 billion USD from orthopedic focused OEMs outsourcing to third party contract manufacturers was close to USD 3.7 billion.

Thanks to below mentioned contract manufacturers who scaled their capabilities to a level, which provided OEMs with confidence to board on outsourcing wagon which is out speeding all its other counter parts.


Further another graph below indicates why outsourcing for overall medical device industry still has good potential in coming days. There are still OEMs who are thinking about utilizing medtech CMOs capabilities for their manufacturing need, and if the CMOs are able to convince the decision makers the change in current 25% number is highly likely.



Source 1:

Source 2:

Looking to consolidate tooling, prototyping & volume production requirements, here is med CMO partner to go for

Our claim stands on recent strategic move of Carclo plastics acquisition of Precision Tool & Die.

Carclo’s acquisition was strictly aligned towards objective of moving closer to their key customers in north east part of US. This move also provides medtech OEMs based out of north east US geography an opportunity to tap into consolidated offering of the conglomerate.

While lot of medtech CMOs are bringing in the tooling expertise in-house, considerable chunk of tooling requirements is still met by stand-alone tool manufacturers. And hence Carclo’s acquisition of PT&D surfaces as strategic activity, which positions the company on one stop shop radar.

Deal transaction was valued $ 6 million plus.



Looking to get your medical device into Chinese Markets, here is the only MRO, who can help you materialize your healthcare dreams

We are referring to NAMSA’s recent expansion into Chinese markets. NAMSA is the only medical research organization that offers support through entire product lifecycle from design to market launch (Company has recently put up a beautiful video on its transition from CRO to MRO, URL:

NAMSA recently expanded its APAC capabilities by adding 80000 Sq.Ft facility in China. Facility is equipped with technology that helps you across 3 major aspects of product success, these aspects include:

  • Concept testing
  • Feasibility testing
  • Post market surveillance

Though the operations of the newly started facility are based out of China, the goal of the facility is to serve as gateway for both domestic and global clients. While domestic healthcare companies can leverage the NAMSA’s capabilities to launch product in China (Almost all regulatory agencies, CFDA inclusive treat NAMSA’s name as synonym to good quality), global companies can extend their relationship with NAMSA to new APAC geographies in terms of launching their innovative products.


Medtech OEMs looking to launch devices without the delay, here is partner who can help you accomplish the same

We are referring to Freudenbeg Medical’s recently launched products, which were result of 18 months dedicated effort and hard work. Freudenberg Medical’s newly launched product namely Flexseal Introducer Sheath, Flexseal Hemostasis Valve and Composer Deflectable Catheter Handle Platform are creating a lot of noise in minimal invasive solution market.

The trio (three products) are garnering industry’s focus for three reasons

  • It helps OEMs explore white label services
  • It helps OEMS by providing them with access to new design for improving next gen devices
  • It also helps OEMS save time in case they are looking to offer new feature sets with their current products

Long story short, if you are Medtech OEM looking to bolster your presence in minimal invasive solution market, and don’t want to delay in reaching desired position, Freudenberg is medtech partner to go for.

It is one of the top innovation partner in medical device contract manufacturing fraternity and can help you with finished goods, design and process solution requirement, all under a single packaging.


Hospitals, IDNs and GPOs, you can relax now, your trusted MME rental partner has just scaled up his capabilities significantly

We are referring to US Med-Equip’s recent acquisition of Healthcare professional equipment services. US Med-Equip is renowned player in movable medical equipment rental business and asset management; with this acquisition it has further bolstered its presence in US geography.

Healthcare industry is ever changing and requires players, who think outside the box in terms of delivering solution, who embraces the change with minimal issues, and who make best use of available technology to streamline their offerings. US Med-Equip bears all the three accreditations and is favourite partner of 850 hospitals that it currently caters to.

US Med-Equip is committed service provider who uses advanced technologies such as RFID tracking, pro-active PM Management solutions & others as a tech differentiator; this provides company an upper-hand in highly competitive MME rental business.

Below is short snapshot of company capabilities:

Houston-based US Med-Equip is an innovative healthcare company specializing in the rental, sales, and asset management of movable medical equipment for high acuity medical systems. The company has received ISO 9001:2008 certification for its medical equipment management processing system and is widely known for its 24/7 personalized attention to customer needs. In addition, the company is certified as a bona fide Minority Business Enterprise by the National Minority Supplier Development Council. Ranked in 2011 through 2013 by Inc. Magazine as one of the nation’s fastest growing companies, US Med-Equip offers flexible options for managing medical equipment rentals and purchases, maintaining equipment and providing hospitals equipment tracking technology for enhanced asset management. Dedication to patient care and to promoting the healing process is at the core of the US Med-Equip culture and drives daily operations focused on quality healthcare solutions.


Medical Equipment Rental and Sales, Asset Management Solutions, Asset Management & Tracking Software

  • Website

  • Industry

    Hospital & Health Care

  • Type

    Privately Held

  • Headquarters

    7028 Gessner Rd. Houston, Texas 77040 United States

  • Company Size

    51-200 employees

  • Founded


Machine Learning Trend Visited by New Players

Machine learning has been one of the buzz word in medtech arena.

It basically uses pile of recorded data and deduces the current scenario at much faster pace, where the rate of analysis is much quicker than human deductions of similar situations.

Recently entering this ball game is AliveCor and Mayo Clinic. The duo looks to tranform heart health management by merging their respective core strengths.

AliveCor has mastered the art of heart health management through its electrode hardware systems, which has recorded close to 10 million ECGs. Going forward it looks to subject this data points to machine learning which will not just deliver quick solutions for healthcare ailments, but also benefit other organ treatments.

What has been an interesting note is that ECG is linked to many other variables that can help treat kidney related ailments in much better manner than current therapies.

These interesting developments just go about highlighting the fact that medtech innovators are not just all talk and no work. They are indeed running towards a smoother value centeric offerings.

This point from Abbott’s CEO was all we were looking to hear : Q2 Conference Call

This point from Abbott’s CEO was all we were looking to hear in  Q2 Conference Call

We are referring to news about Abbott’s acquisition of St Jude Medical and Alere hitting a rough patch.

While the company had shelled out humongous ~31 billion dollars on combined deal, the deal had witnessed a hiccup when FTC asked company for more documents in case of St Jude, and for Alere, it was the subpoena from DOJ that made us feel about the deals falling apart.

In the recent Q2 conference call Miles White, CEO and chairman of Abbott assured that everything in terms of these two deals is on right track, and there is nothing to worry about.

Medtech players are known for their big cash shell out when it comes to acquisitions, Medtronic acquisition of Covidien, BD’s acquisition of Care Fusion and Pfizer acquisition of Hospira, just goes about showing how big of a cheque medtech behemoths sign-off during acquisitions.

But the story does not end there for medtech OEMs, they have to go through numerous regulatory checks & approvals before acquiring companies. Abbott though had signed of a massive ~31 billion dollar cheque for St Jude and Alere, it still had to go through challenging tasks lined next.

Miles White assurance on the deals was all the medtech fraternity was awaiting for. With closure of these deals,medtech consolidates further, which sure will entail more dynamics change for medtech industry.

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